XPO Logistics Subsidiaries Sued for Misclassifying Drivers
January 12 2016 - 12:40AM
Dow Jones News
Three trucking company subsidiaries of XPO Logistics Inc. were
sued in California on Monday for allegedly misclassifying their
drivers as independent contractors.
The class-action lawsuit, filed in Los Angeles Superior Court,
argues that drivers for XPO subsidiaries Pacer Cartage Inc., Harbor
Rail Transport and PDS Transportation Inc. failed to pay minimum
wage, provide meal breaks and rest breaks and reimburse business
expenses, among other allegations.
In an emailed statement, XPO Chief Operating Officer Troy Cooper
said, "We believe this case is without merit and plan to litigate
it vigorously. We are in constant dialogue with our
independent-contractor carriers and believe the vast majority of
them value the significant benefits that operating independently
can bring."
The trucking companies facing litigation perform what's known as
drayage trucking services, hauling goods the short distance between
seaports and nearby rail yards and warehouses, a major link in the
national supply chain. Within the domestic drayage market,
estimated by research firm FTR Transportation Intelligence as
generating $12 billion in annual revenue, the independent
owner-operator model is common.
But that model has increasingly come under legal scrutiny, in
drayage as well as other sectors of the transportation industry.
Alleged misclassification of workers has led to high-profile
lawsuits against Uber Technologies Inc. and FedEx Corp., among
others. FedEx settled a case in California last year for $228
million. Last month, a California judge ruled to expand a
class-action suit brought against Uber by three drivers who claim
they are employees, not contractors, and deserve benefits such as
workers' compensation.
Workers in the lawsuit filed Monday are being represented by the
Los Angeles law firm Kabateck Brown Kellner LLP, which has
previously brought similar claims against several drayage trucking
companies, including Pacer. A $4.25 million settlement with Pacer,
which they reached last May, is awaiting a judge's approval.
Write to Erica E. Phillips at erica.phillips@wsj.com
(END) Dow Jones Newswires
January 12, 2016 00:25 ET (05:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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